Individuals exchange contracts for the delivery of commodities in competitive markets and, simultaneously, act strategically; actions affect utilities across individuals directly or through the payoffs of contracts. This encompasses economies with asymmetric information. Nash-Walras equilibria exist for large economies, even if utility functions are not… (More)
In a game with rational expectations individuals refine their information with the information revealed by the acts of other individuals. We show that, at a Nash equilibrium of a game with rational expectations, the information of individuals is essentially symmetric, and their acts are common knowledge. JEL classification number: D82.